FX.co ★ Palm Oil Edges Higher After Hitting Six-Week Low

Malaysian palm oil prices experienced a slight increase, stabilizing around MYR 4,000 per tonne after experiencing a significant 3.5% decline in the previous session. This uptick was attributed to traders taking advantage of the lower prices at a six-week low for bargain hunting. Market sentiment was further bolstered by the strengthening of Chicago soyoil prices and a rise in crude oil prices, as investors evaluated the implications of the truce between Iran and Israel. Additionally, the outlook was positively influenced by indications of robust export activity, with cargo surveyors reporting an estimated increase in Malaysian palm oil shipments by 10.9% to 14.3% during the first 20 days of June compared to the previous month. In the United States, there were reports suggesting that Washington has proposed that refiners blend an unprecedented volume of biofuels into gasoline and diesel for the coming year. Nonetheless, potential gains were limited by a dip in immediate edible oil demand from India, the largest buyer, particularly with concerns that India's soyoil imports might decrease by 18% due to port congestion. Simultaneously, palm oil inventories and production have been on the rise for the third month in a row as of May, prompting worries about a possible supply surplus.